Bernie Ecclestone has confirmed that Azerbaijan has signed a contract to host a grand prix on the streets of Baku in 2016, which will be known as the Grand Prix of Europe.

The deal was announced on Friday by Azerbaijan's ministry for youth and sport, although the exact layout of the circuit is not yet confirmed. However, the organisers envisage that the main grandstand and pits will be in Azadliq Square and that the racetrack will include major roads and landmarks such as Neftchilar Avenue, Government House and Maiden Tower.

"We are very happy that Baku has joined the Formula One family," Ecclestone said. "This will be a street race, which will pass through interesting and picturesque parts of Baku. The event will meet the current Formula One criteria."

Azerbaijan's Minister of Youth and Sport, Mr. Azad Rahimov added: "I am delighted to officially announce that we have signed a contract to bring Formula One racing to Baku in 2016. Our location at the crossroads of eastern Europe and western Asia is a new frontier for Formula One racing.

"Azerbaijan is a modern European country that has established a reputation as a centre of sporting excellence. The deal to bring Formula 1 racing to Baku is a very significant new chapter in our ongoing success to attract the world's largest sporting events to our country."